The Chinese government wants to limit screen time for kids

• Children under the age of 8 will only be able to use their devices for 40 minutes each day, while 16-18 year olds may spend a maximum of 2 hours online.
• Overnight usage (between 10 p.m. and 6 a.m.) will be prohibited.
• The rules specifically target “smart mobile devices” (移动智能终端) and do not mention if the same restrictions will be applied to laptop and desktop computers. However, of the 1.067 billion internet users in China as of December 2022, 1.065 billion mostly connect via mobile devices.

The share prices of tech companies plunged following the announcement of the proposal as investors worried about yet another round of crackdowns.

• It’s not clear how the rules will be enforced. The controls will need to be implemented by the tech companies, which will have to build “children’s mode” functionality into apps and devices but parents will have to implement this “children’s mode” at their own discretion.
• The public have one month to give feedback on the proposed rules, and they may be watered down in the final version.

This is what we know so far.

Arran Hope

The United States has formally invited Wáng Yì 王毅, China’s newly reappointed foreign minister, to Washington, after Wang’s predecessor Qín Gāng 秦刚 was removed without explanation from his post. The State Department announced the invitation but did not say if Beijing has responded — given the other American moves against China this week, Wang may decline.

The White House will ask Congress to fund weapons for Taiwan. U.S. President Joe Biden will use a budget request initially intended to fund arms for Ukraine to help support Taiwan’s deterrence efforts to the tune of $345 million. The Chinese foreign ministry spokesperson said that this action “seriously violates the one-China principle,” and that China has made representations to the U.S. in response.

The man who might be Taiwan’s next president will stop in the U.S. on the way to, and from Paraguay. William Lai (賴淸德 Lài Qīngdé), the Chairman of the ruling Democratic Progressive Party (DPP) will visit Paraguay to attend the inauguration of incoming president Santiago Peña Palacios, on August 15. Paraguay is one of Taiwan’s 13 remaining diplomatic allies. Lai will land in New York on August 12, and return via San Francisco on August 16. China’s ambassador to the U.S., Xiè Fēng 谢锋, recently told an audience at the Aspen Security Forum in that Lai’s visit was like a “gray rhino charging at us.”

Investment company BlackRock has been accused of financing companies that advance China’s military and undermine American values and security in a letter from the U.S. House of Representatives Select Committee on the Chinese Communist Party.

The letter says that BlackRock facilitated investments into over 20 blacklisted Chinese entities and had invested at least $429 million into Chinese groups that acted “directly against the interests of the United States.” The Committee also complained that nearly 5% of financial information provider MSCI’s China A shares index are blacklisted entities. Both firms are cooperating with the Committee. BlackRock pointed out that it was only one of 16 asset managers investing in Chinese companies.

A report found significant Xinjiang exposure remains in the solar industry. The research, funded by the London-based Modern Slavery and Human Rights Policy and Evidence Center, rated the five biggest solar firms as having “high” or “very high” potential exposure to Xinijang, with some having clear ties to the region.

Solar supply chains are opaque. However, a large proportion of polysilicon processing, the raw material for solar panels, occurs in Xinjiang, where widespread forced labor practices have been documented by a range of credible sources.

Supply chain concerns have prompted additional American bans against two Chinese companies: The U.S. Department of Homeland Security has sanctioned Camel Group Co. Ltd., a battery manufacturer, and Chenguang Biotech Group Co. Ltd., a spice and extract manufacturer, over concerns of the use of forced labor.

China is currently dealing with the world’s fastest increase in cases of mpox, formerly known as monkeypox, according to the World Health Organization.

Chinese state media: Instructions from Xí Jìnpíng 习近平 on flood relief work following the devastating effects of Typhoon Doksuri are the subject of the top story in today’s print edition of the People’s Daily.

Xinhua also leads with the flood control efforts in North China, but the state news agency’s English webpage highlights the publication of new translations of Xi Jinping’s selected works into seven ethnic minority languages: Mongolian, Tibetan, Uyghur, Kazakh, Korean, Yi and Zhuang.

• The absence of China’s ex-foreign minister Qín Gāng 秦刚 is the latest “big melon” that people have been chewing on.

Political scientist Wú Guóguāng 吳國光 commented caustically on this latest debacle in an essay translated by scholar Geremie R. Barmé.

Geremie R. Barmé

• On Tuesday, as pallbearers carrying Lee’s coffin marched slowly toward the Hong Kong Funeral Home ahead of her cremation, nearly 1,000 mourners — most in black, some holding bouquets of white flowers — convened on the streets and outside the funeral hall.
• The two-day service took place nearly a month after Lee died at 48 following a suicide attempt at home that left her in a coma.

Lee was the first Chinese singer to establish herself in the American market.

• In 1998, she had a breakout moment on the global stage when she voiced the titular character for the Chinese version of Disney’s Mulan and sang the Mandarin version of its theme song “Reflection.”
• In 2001, she made history as the first Chinese American to perform at the Oscars, singing “A Love Before Time” from Crouching Tiger, Hidden Dragon, the award-winning martial arts film from internationally-acclaimed Taiwanese-American director Ang Lee (李安 Lǐ Ān).

Her death has sparked widespread discussions about depression and mental health on Chinese social media. Until recently, such topics were long considered taboo.

Zhao Yuanyuan

• Princess Taiping wielded all but ultimate power in the Tang court. At one point, it seemed only a matter of time before she would succeed to the imperial throne itself. As extraordinary as that feat would have been, it was a very ordinary miscalculation that led to her downfall, James Carter writes in This Week in China’s History.
• Using social media to engage Chinese youth about feminism and sexuality: Stephanie Yingyi Wang, an assistant professor in the Gender and Sexuality Studies Department at St. Lawrence University, talks about the challenges and rewards of LGBTQ activism in China.

Below are links from our NewsBase to other noteworthy reports published in the last 24 hours from and about China.

BUSINESS AND TECHNOLOGY:

Semiconductors
China chip firms soar on report of advance in fabrication tech / Bloomberg (paywall)
“Shanghai Micro Electronics Equipment Group, the Chinese leader in so-called lithography gear that’s been blacklisted by the US, is working to deliver its first system based on 28-nanometer technology later this year, local newspaper Securities Daily reported on Monday, citing an unnamed source. Optical components maker Mloptic Corp. gained as much as 15%, while peers Kingsemi Co. and Castech Inc. each advanced around 5% on Wednesday morning.”

Screen time regulations for youth
China looks to limit children to two hours a day on their phones / Reuters
“China’s cyberspace regulator said on Wednesday children under the age of 18 should be limited to a maximum of two hours a day on their smartphones, sending shares in tech companies tumbling.”
China proposes tighter limits on children’s use of tech / FT (paywall)
China proposes two-hour daily limit for teenagers on phones / Nikkei Asia (paywall)

Cryptocurrency
Crypto is illegal in China. Binance does $90 billion of business there anyway. / WSJ (paywall)
“Binance, the world’s largest crypto exchange, was supposed to leave China behind when the country made cryptocurrency trading illegal in 2021. Almost two years later, users traded $90 billion of cryptocurrency-related assets in China in a single month, according to internal figures viewed by The Wall Street Journal and current and former employees.”

Chinese car companies and Russia
How Russia helped turn China into the world’s biggest car exporter / WSJ (paywall)
“China is now the world’s largest auto exporter with Russia becoming its biggest buyer this year. WSJ explains how Chinese car brands profited from Moscow’s invasion of Ukraine and Western sanctions.”

Rare earths
World battles to loosen China’s grip on vital rare earths for clean energy transition / Reuters
“The world’s two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple’s iPhone to Tesla’s (TSLA.O) Model 3 to Lockheed Martin’s F-35 fighter jet.”

AI
Opinion: World cannot afford AI cooperation falling prey to U.S.-China geopolitical strife / SCMP (paywall)
Syed Munir Khasru writes: “Geopolitics is a threat to international cooperation on AI legislation, resulting in patchwork strategies, competing goals and disjointed global standards. The ongoing chip war between the U.S. and China could make things worse, leading to uneven enforcement and unequal protection.”

Forced labor
U.S. targets two China-based firms over forced labor practices, Department of Homeland Security says / Reuters
“The United States has banned goods from two China-based companies as part of an effort to eliminate forced labor practices in the U.S. supply chain, prompting a warning from Beijing of measures to safeguard Chinese firms’ rights.”

Green shipping
China pushes electric future for inland shipping / Caixin (paywall)
“Electric ships, boats and barges could be navigating much of China’s vast network of inland waterways in the near future. With over 100,000 passenger and freight vessels operating within the country, some regions that straddle the country’s major rivers and others along the coast are ramping up support for electric vessels in an effort to reduce emissions from inland water transport.”

Development and real estate
Chinese cities tighten property firms’ access to escrow funds / Reuters
“Some Chinese city governments have made it harder for developers to access tens of billions of dollars from property sales held in escrow accounts, people familiar with the matter said, raising risks the cash-strapped companies will be squeezed even more.”
Chinese buyers return to U.S. property market – but this time they want a home, not an investment / SCMP (paywall)
“Chinese demand for US residential property more than doubled in the 12 months to March but has a way to go to get back to pre-pandemic levels, according to a report published on Wednesday.”
Central bank vows further mortgage easing to support housing / Caixin (paywall)
“China’s central bank pledged to step up mortgage easing to support homebuyers, signaling further efforts to bolster the ailing property market.”

Stock market
Opinion: Politburo meeting buoys Chinese stocks, but will it last? / Caixin (paywall)
Wang Jie writes: “China’s stock market witnessed a remarkable surge on Friday, as shares of brokerages, banks and insurers soared. The driving force behind the rally became clear after the market closed, when a media outlet reported that the China Securities Regulatory Commission (CSRC) had summoned several leading brokerages to seek their opinions on a Politburo directive that requires authorities to ‘activate the capital market and bolster investor confidence.’”

China’s economic woes
The end of China’s economic miracle / Foreign Affairs (paywall)
“Like a patient suffering from that chronic condition, China’s body economic has not regained its vitality and remains sluggish even now that the acute phase—three years of exceedingly strict and costly zero-COVID lockdown measures—has ended.”
China’s economy disappoints again. And again. / WSJ (paywall)
“China’s weak economic recovery is a big reason why Chinese stocks have lagged behind other markets this year. The mainland CSI 300 index is up just over 3% in the year to date, while Hong Kong’s Hang Seng Index is roughly flat for 2023.”

Starbucks
Starbucks reports record revenue as China booms, but sales still fall short of expectations / AP
“Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life.”

SCIENCE, HEALTH, AND ENVIRONMENT:

G20 climate talks
China denies reports it obstructed G20 climate discussions / Reuters
“Reports that China obstructed discussions on tackling climate change at Group of 20 (G20) meetings last week in India are ‘completely inconsistent with the facts,’ China’s foreign ministry said on Wednesday.”

COVID-19
Coronavirus in China: Beijing urges new vaccination drive as next COVID wave looms / SCMP (paywall)
“China’s national health agency has begun a new vaccination drive for the elderly ahead of a possible COVID-19 wave in the autumn and winter, state-run Xinhua reported on Tuesday.”

Extreme weather
What caused the record rainfall in Beijing and northern China? / Reuters
“Besides the remnants of Doksuri, warm and humid air-flows and water vapor brought by Typhoon Khanun slowly moving in the Western Pacific created the conditions for the heavy rains, according to Chinese meteorologists.”

Pharmaceuticals
U.S. dependence on China for lifesaving drugs grows / Nikkei Asia (paywall)
“U.S. imports of Chinese-made pharmaceuticals are soaring to meet shortages at home, with authorities in some cases greenlighting drugs not formally approved for American use.”

POLITICS AND FOREIGN AFFAIRS:

Military
China’s aircraft carrier forces strengthened as navy shifts assets, U.S. report says / SCMP (paywall)
“China’s navy has completed the transfer of most of its aviation units to the air force, a move that U.S. Air Force experts said will allow the navy to focus more attention on its aircraft carriers.”
Africa sets sights on China as a top destination for military training / SCMP (paywall)
“Professional military training is helping to strengthen relationships between China and African countries, in turn extending Beijing’s influence.”

Where is Qin Gang?
Opinion: China owes world explanation for abrupt removal of foreign minister / Nikkei Asia (paywall)
The Nikkei’s editors write: “Beijing has given no clear explanation for why it dismissed Qin, whose whereabouts were unknown for one month before the news of his ouster broke. If China wants to boast about its global influence, it bears a serious responsibility to explain such impactful actions to the international community.”

National security
Xi’s security obsession / Foreign Affairs (paywall)
“Since he came to power in 2012, the Chinese leader Xi Jinping has been laser-focused on ensuring the security of his regime. He has purged potential political rivals, restructured the military and internal security apparatus, built an Orwellian surveillance state, and pushed through repressive new laws in the name of national security.”

Taiwan
Taiwan detains army officer suspected of leaking military secrets to China / AP
“Taiwan has detained an army officer and several collaborators on suspicion of handing military secrets to China.”
Taiwan boosts counter-espionage effort after suspected China infiltration / Reuters
“Taiwan’s military vowed on Wednesday to step up counter-espionage efforts as authorities investigated several serving and former military officers suspected of spying for China.”
Taiwanese presidential hopeful William Lai to stop in U.S. during Paraguay trip / SCMP (paywall)
“The DPP candidate will transit through New York and San Francisco when he travels to attend the inauguration in the South American ally country. However, the independence-leaning politician denies controversial stops in Washington and Virginia headquarters of de facto U.S. embassy.”
Taiwan unveils dates for U.S. stops by vice president despite China’s protests / WSJ (paywall)
Joe Biden to ask Congress to fund Taiwan arms via Ukraine budget / FT (paywall)
“The White House will ask Congress to fund arms for Taiwan as part of a supplemental budget request for Ukraine, in an effort to speed up the supply of weapons to the country amid the rising threat from China.”

U.S.-China competition and tensions
The U.S. is concerned with blacklisted Chinese firm’s hand in island-building near its Manila embassy / AP
“The United States has expressed concerns over major land reclamation projects in Manila Bay near its heavily secured embassy due to the involvement of a Washington-blacklisted Chinese company, the U.S. Embassy said Wednesday.”
China’s top diplomat Wang Yi is best hope for making Xi-Biden meeting happen, analysts say / SCMP (paywall)
“China’s top diplomat Wáng Yì 王毅 could be the best bet to lay a foundation for a potential meeting between the U.S. and Chinese presidents when he visits Washington, observers said.”
U.S. invites new Chinese Foreign Minister Wang Yi to Washington / Nikkei Asia (paywall)
Probes for facilitating China investments / WSJ (paywall)
Americans’ retirement funds are unwittingly fueling Chinese firms the U.S. has flagged over security and human-rights issues, lawmakers say

Australia
Australia invites China’s new foreign minister to Canberra, sees ‘no downside’ in Wang Yi’s return / SCMP (paywall)
“Australia’s embassy in Beijing has issued an invitation from Minister for Foreign Affairs Penny Wong to her newly reappointed Chinese counterpart to visit Canberra, according to sources close to the Australian government, although a date has not been confirmed.”

Vietnam
“Time travelers” in Vietnam / Panda Paw Dragon Claw
“Despite China’s increasingly deep presence in the developing world, when it comes to the topic of ‘China overseas,’ Chinese audiences tend to remain very much obsessed with the relationship with the West…Against this backdrop, the recent Tencent documentary series ‘Chasing the Tide’ (出海) offers an interesting perspective on real-world Belt and Road exchanges by pointing the lens at Chinese entrepreneurs in Vietnam.”

SOCIETY AND CULTURE:

LGBTQ repression
‘Rainbow hunters’ target LGBTQ Chinese students / Foreign Policy (paywall)
“In 2019, on the International Day Against Homophobia, Biphobia, and Transphobia, a group of “rainbow hunters” embarked on a mission at a prestigious Shanghai university. They were school employees, mostly campus workers and student counselors, tasked with finding anyone with attire or accessories associated with the LGBTQ community.”

Religious freedom
China is taking a wrecking ball to famous mosques / Foreign Policy
“On July 8, three coaches full of Hui Muslims, China’s largest Islamic minority, returned from the pilgrimage to Mecca to their hometown of Shadian, in the southwestern province of Yunnan. The return from the Hajj, Islam’s holiest journey, is usually a joyous time — but when they returned, they found Shadian’s grand mosque closed, lights off and doors shut. Relatives waiting to greet them confirmed their worst fears: Local officials had closed the mosque in order to demolish the dome and minarets.”

Social media
How China trolls flooded Twitter / Foreign Policy
“Common wisdom once held that Beijing simply wasn’t in the business of disrupting information ecosystems abroad. Beijing was no Moscow. While the Chinese government projected stilted propaganda globally, its obsession with online information control more or less stopped at its own borders.”